When you’re getting ready to sell your house, there are many things to consider. And it takes a lot of work to get it ready for the market. Depending on your situation, you might wonder whether you should sell to a house flipper, and if house flippers are worth it? There’s no quick answer to this; you will have to look at your specific situation to see if this is a good fit for you. Read on to see what questions you should ask before you decide to sell your New York home to a house flipper.
Are you Facing a Crisis/Emergency and/or Need to Relocate?
Maybe you are in the middle of a family emergency, such as the kind where you need to relocate in a hurry. Or you’re in a financial crisis, which means that you need money quickly and aren’t as concerned about a typical drawn-out sale. If any of this applies to you, you might be fine selling to a house flipper.
Is Your Home Falling Apart? Severely Damaged?
Has your home fallen apart? Is it in a state of major disrepair? If your home has fallen on hard times and is in a state of major disrepair, you need to contemplate how this figures into selling it. It will take a lot to bring it up to snuff and to make it marketable. If the structure must be taken down to the bare bones, it’s not the best scenario for a traditional sale and a house flipper might be an attractive option. A cash buyer may be in a much better position to purchase it than someone with a conventional or government-sponsored loan. Of course, even flippers might avoid certain things and may be leery of foundation problems or the need for termite treatment.
Are You Intimidated by the Listing Process?
If you sell to a flipper, you don’t have to do the type of work to get the property ready for market that you normally would have to do, such as staging and making videos and photos available. You won’t have to deal with the process of arranging showings and having people walking through your home. If you are intimidated or overwhelmed by these things, selling to a house flipper can ease this load.
Are You Aware of the Flipper Pricing Model?
Do you know about the flipping industry standard 70 percent rule, which states that an investor will offer no more than 70 percent of a property’s after-repair value, (AVR), for a house they plan to flip? If a property needs repairs, those estimated costs would be subtracted from that 70 percent.
While this doesn’t assure a flipper a profit, it does allow for a prompt calculation with flexibility for expenses such as taxes, utilities, and other costs that can tear away an expected profit while the property is on the market. But if your home is such that the ARV is so low in comparison to the repairs that are need, then it’s not worth the investment.
Will your Home Appeal to House Flippers in the Area?
Is the location in a place where buyers want to be? Not being a historic property is also important. Is it capable of rehab possibilities fairly quickly?
How Soon Do You Need to Close?
One of the greatest advantages to selling your home to a flipper is the benefit of getting a quicker closing. If you need to go it fast, consider a flipper.
Talk to a New York Real Estate Attorney
If you’re considered selling your home, your next step should be to contact a skilled NY real estate attorney. Regardless of whether you decide to sell to a flipper or not, consulting with an attorney will help to ensure a smooth transition. Contact an experienced MOWK Law attorney for help with this and your real estate law needs.